Item 3.10 Engineering Agreement
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Engineer Wagner October 27, 2025
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty
City Attorney Kendall
3.10 – Engineering Agreement
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending the City Council approve an amended Fee Schedule for an agreement.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes No
BACKGROUND/JUSTIFICATION:
The City of Otsego contracts with Hakanson Anderson Associates, Inc. (Hakanson) to engage City Professional
Engineering Services. These services include, but are not limited to, preparation of plans and specifications for
projects as determined by the City; development of reports, studies, and applications for review and approval by the
City and other agencies for municipal operations including sanitary sewer, public water systems, stormwater
management, streets, and roads and other public improvements; plat review; other such engineering services
performed by a City Engineer.
This contractual relationship dates to 1991, with the current agreement approved by the City Council on December
14, 2020. The agreement outlines that rates established in the agreement attachments were through December 31,
2022, and that any changes to these rates following that date must be approved by the City. On November 27, 2023,
the City Council approved amended fee schedules, effective January 1, 2024, and are the current rates in effect.
On April 28, 2025, Hakanson submitted notice of intent to amend the fee schedules in accordance with the
Agreement which requires notice of rate changes by June 1 of any year. The changes to the rates for Attachment A
and Attachment C are included in the packet for consideration of approval. There are no proposed changes in the
rates for Attachment B of the current agreement. The changes to the rates would be effective January 1, 2026, and
would remain in effect until future City Council consideration.
The City Attorney has reviewed the current agreement and the proposed changes to the rates in Attachment A and
Attachment C and has provided favorable comments for consideration of approval by the City Council.
The Public Works Subcommittee was presented with this information at their October 15, 2025, meeting and
provided direction for City Council consideration of approval.
SUPPORTING DOCUMENTS ATTACHED:
• Agreement for City Professional Engineering Services
• Memorandum from Hakanson
• Attachment A & C – Billing Rate Schedules (Proposed)
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve an amendment to Attachment A & C – Billing Rate Schedules to the Agreement for City
Professional Engineering Services between the City of Otsego and Hakanson Anderson Associates, Inc. approved by
the City Council on December 14, 2020.
BUDGET INFORMATION
FUNDING: BUDGETED:
Engineering services are budgeted and expensed to
each fund based on the work being completed.
Yes
Page 11
Attachment A
2024 Billing Rate Schedule
Job Classification Hourly Billing Rate
Ron Wagner - City Engineer $135
Matt Kind - Assistant City Engineer $124
Principal Engineer $124
Project Manager/Engineer $96 - $124
Design Engineer $84 - $124
Water Resource Specialist $98
Senior Technician $124
Technician $68 - $90
Senior Construction Observer $84 - $107
Construction Observer $68 - $90
Administrative Assistant $73
GPS/Robotic/Drone Equipment $40
Survey Crew Chief $101 - $124
Survey Technician $68 - $90
Page 13
Attachment C
2024 Billing Rate Schedule
Job Classification Hourly Billing Rate
Ron Wagner - City Engineer $163
Matt Kind - Assistant City Engineer $135
Principal Engineer $152
Project Manager/Engineer $107 - $141
Design Engineer $90 - $124
Water Resource Specialist $107
Senior Technician $101 - $124
Technician $73 - $96
Senior Construction Observer $96 - $118
Construction Observer $73 - $96
Administrative Assistant $73
GPS/Robotic/Drone Equipment $40
Survey Crew Chief $107 - $141
Survey Technician $73 - $96
\\dc\SharedLimited$\City Council Meetings\Council Packets\2025\10-27\3.10 - City Engineer - Rate Changes\ot901-2026
AFotsegofees rw.docx
Main Office:
3601 Thurston Avenue, Anoka, MN 55303
Phone: 763/427-5860 Fax: 763/427-0520
www.haa-inc.com
MEMORANDUM
TO: Adam Flaherty, City Administrator/Finance Director
CC: Lisa Broughton, HAA Finance
FROM: Ronald J. Wagner, PE
City Engineer
DATE: April 28, 2025
RE: Proposed 2026 Engineering Rates
We respectfully request that as of January 1, 2026, our billing rates be adjusted to meet revised
Attachment A and Attachment C (attached) which were included in our service agreement with the
City of Otsego. This amounts to a 6% increase from our January 1, 2024 rates.
We feel the new rates continue to coincide with our mission statement “to meet the client needs and
expectations by providing the finest professional service for a fair and reasonable cost.”
Page 11
Attachment A
2026 Billing Rate Schedule
Job Classification Hourly Billing Rate
Ron Wagner - City Engineer $143
Principal Engineer $134.50
Project Manager/Engineer $101.75 - $134.50
Design Engineer $89 - $134.50
Water Resource Specialist $104
Senior Technician $134.50
Technician $72 - $95.50
Senior Construction Observer $89 - $114
Construction Observer $72 - $95.50
Administrative Assistant $77
GPS/Robotic/Drone Equipment $42.5
Survey Crew Chief $107 - $134.50
Survey Technician $72 - $95.50
Page 13
Attachment C
2026 Billing Rate Schedule
Job Classification Hourly Billing Rate
Ron Wagner - City Engineer $173
Principal Engineer $161
Project Manager/Engineer $113.50 - $149.50
Design Engineer $95.50 - $131.50
Water Resource Specialist $113.50
Senior Technician $107 - $131.50
Technician $77 - $102
Senior Construction Observer $102 - $125
Construction Observer $77 - $102
Administrative Assistant $77
GPS/Robotic/Drone Equipment $42.50
Survey Crew Chief $113.50 - $149.50
Survey Technician $77 - $102